Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50846
Authors: 
Dreher, Axel
Year of Publication: 
2006
Series/Report no.: 
Arbeitspapiere // Konjunkturforschungsstelle, Eidgenössische Technische Hochschule Zürich 121
Abstract: 
The paper analyzes the impact of decentralization on governance employing four indicators of governance and five measures of decentralization. Depending on data availability, crosssections for a maximum of 129 countries are estimated. Results for a panel of about 70 countries over the period 1984-2001 are also presented. The results show that decentralization - measured as the share of sub-national employment, revenues or, respectively, expenditures - improves governance. This is particularly true for low income countries but - depending on the indicator employed - to some extent for high income countries also. However, the number of sub-national government tiers exerts a negative impact on some dimensions of governance.
Subjects: 
Decentralization
Governance
Legal Quality
Judicial Independence
Federalism
Institutions
JEL: 
H40
H71
H72
H77
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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